Building Wealth Through Assets: An Individual Development Accounts Primer

1. Individual Development Accounts (IDA) BasicsSpeakers:Maggie Reilly, CASA of OregonTom Foley, World Institute on DisabilityJim Gatz, Assets for Independence

2. Building Wealth Through Assets: An Individual Development Accounts Primer Assets Learning Conference September 23, 2010

3. Tool for families with limited financial resources to build wealth and enter the financial mainstream • Focused on habitual savings tied to goal-setting • Learning components: financial education and asset-specific training • Asset goals & program structure • Eligibility Introduction to Individual Development Accounts

4. Opportunity to create partnerships and collaborate • IDA is a tool, not a stand-alone program • Ability for organizations to access IDAs and incorporate them into their programming or services • Funding options for different asset goals Networks v. Single-Site

5. Network model v. single-site model • CASA operates two networks: • Valley Individual Development Accounts (VIDA) • Matched Education Student Savings Accounts (MES2A) CASA of Oregon’s IDA Networks

6. Started in 2001 • 42 partner organizations • Offer a variety of asset goals • Leverage state funding with funding from Assets for Independence • Over 1800 participants to date VIDA Collaborative

7. Started in 2008 • Originally one school, now 16 • Offered through high schools, jr. colleges & universities • Opportunity for institutions to leverage institutional aid or foundation money with AFI funds • Over 250 participants to date MES2A College Initiative

8. Connect with organizations supporting asset building and wealth creation for low- and moderate-income families; mission-alignment • Traditional partners like housing authorities, community development corporations or human service agencies • Other partnerships—employers, educational institutions, manufactured home park owners • Find a program on the CFED Program Directory: http://cfed.org/programs/idas/directory_search/ Brokering Community Partnerships

9. Contact us at www.casaoforegon.org Maggie Reilly Program Manager mreilly@casaoforegon.org Or learn more about our specific networks: VIDA: www.vidaoregon.org MESA: www.mesaoregon.org Want to learn more or connect with CASA?

10. CFED Assets Learning Conference Presented by Thomas Foley, World Institute on Disability

11. SSI Earned Income Calculation • Frank’s monthly income • SSI: $800 • Earned Income (EI): $585 There is a $2,000 asset limit for people with disabilities receiving SSI.

12. Individual Development Accounts • What are IDAs? • Matched savings accounts • Save for education, homeownership, or starting their own business • Accountholders typically receive financial education and counseling • Who Qualifies for an Individual Development Account? • Earned income • Income level verification • Other requirements (vary by program)

13. IDAs and Public Benefits

14. SSI Earned Income Calculation • Frank’s monthly income • SSI: $800 • Earned Income (EI): $585 • IDA savings : $200

15. SSI Earned Income Calculation • Frank’s monthly income • SSI: $800 • Earned Income (EI): $585 • IDA savings : $200

16. For more technical assistance on accessing IDA’s and other disability asset building strategies contact: Thomas Foley at World Institute on Disability 510 16th Street, Suite 100 Oakland, CA 94612 Phone: 510-763-4100 Fax: 510-763-4109 E-mail: tom@wid.org Website: www.wid.org

17. Assets for Independence Office of Community ServicesAdministration for Children and FamiliesU.S. Department of Health and Human Services

18. AFI IDA Participants • Learn about financial and consumer issues • Save in IDA Accounts • Purchase Financial Asset • First home • Higher education or training and/or • Small business

19. A Snapshot of AFI Participants • 75,000 + IDA accounts and growing • 80% of participants are women • Many single parent households • IDA is first savings account for most participants

20. AFI Projects • 400 projects throughout the nation • Projects partner with financial institution • Projects located within multi-purpose non-profits • State, local or Tribal governments • Multi-site networks of organizations

21. Community Action Agencies Community Development Corporations Community Development Financial Institutions Credit Unions Faith-Based Organizations Government Agencies Examples of AFI Project Grantees • Housing Finance Agencies • State-Wide and Multi-State Associations • United Way Organizations • Workforce Development Agencies • Youth Agencies • Tribal Governments

22. Participant’s Perspective

23. EXAMPLE • Kim needs a home • She needs $6,000 for down payment and closing costs • Opens IDA and receives financial education, debt counseling and home ownership information • Receives savings match at a rate of $2 for every $1 saved in her IDA • Kim saves $2,000 – $55 per month over 3 years

24. Kim’s IDA $2000 Savings $2,000 Kim Saves $4000 Matching $2,000 Federal $2,000 Non-Fed $6000 for Home

25. Grantee Perspective

26. Key Topics • Project Funding – Federal and Non-Federal • Project Reserve Fund • Flexible IDA Savings Match Structure • Participant Eligibility

27. Project Funding • Five Year project grants • Non-Federal cash equal to or greater than the Federal grant amount • Federal grant funds and non-federal cash are subject to program rules

28. Non-Federal Funding Sources – Examples • Financial institutions • Foundations • United Way organizations • Corporations / Employers • Faith-based organizations • State, local and Tribal governments

29. Flexible IDA Savings Match Structure • IDA Savings Match Rates can range from $1 match for $1 earned income saved to $8 match for $1 earned income saved • Maximum Federal Contribution • $2000 per individual • $4000 per household

30. Participant Eligibility • TANF-eligible in their state OR • Meet both of the following two criteria Income: twice the poverty guidelines (about $44,000 for family of four) OR EITC eligible AND Net worth: maximum $10,000 (less one residence/one vehicle) • Administrating agencies may apply additional eligibility rules

31. AFI Application Overview • Annual Review Cycles – Winter, Spring, Summer • Up to $1,000,000 (average $325,000) • $19,000,000 available in FY 2011 • 50-60 funded projects

32. Role for Interested Organizations • Apply for funding and manage an AFI Project! • Partner with on-going AFI Projects in your service area by: • Encouraging clients to join AFI Projects • Providing financial education in partnership with AFI Projects • Become a sub-grantee

33. AFI Resource Center • Information, assistance and guidance • Assistance with developing IDA projects • Website www.IDAresources.org • Weekly E-newsletter • Topical conference calls • Communities of practice discussion groups • Training academies

34. ASSET Initiative Priority for the Administration for Children and Families Providing core asset building services to more families through ACF networks Expanding the reach of the AFI program Involves information sharing, training and piloting new approaches 34

35. ASSET Initiative Cross-cutting Strategies Financial Education Tax Credit Outreach Access to Federal Benefits 35

36. ASSET Initiative Focus Areas Families with Young Children - Head Start and Child Care Providers Fathers and Families in Child Support - Child Support Enforcement Agencies People with Disabilities - Disability Service Providers 36

37. ASSET Initiative Victims of Domestic Violence - Domestic Violence Prevention Organizations Native American Communities - Tribal Governments and Service Organizations Refugee Communities - Refugee Services Organizations 37

38. Let’s Talk Soon AFI Resource Center info@IDAresources.org 1-866-778-6037 www.IDAresources.org 38